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HSBC Bank Sends Activated Debit Cards Through Mail
Knowzy writes "At least two divisions at HSBC Bank apparently failed card issuing 101 and are mailing out debit cards pre-activated. Because they are debit cards, fraudulent transactions come directly out of a victim's checking account. A similar report from 2004 suggests this issue is longstanding and widespread. When confronted with the evidence, HSBC would not commit to fixing this issue, preferring instead to offer vague statements like, 'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'"
HSBC Customer Service (1.800.975.4722) HSBC Bank USA, N.A. P.O. Box 2013 Buffalo, NY 14240 https://www.hsbctaxpayerfinancialservices.com/htax/Cust/inquiry If it were my bank I'd take my money and walk....
'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'
Oh by the way look at this other shiny pretty stuff we've been doing to divert your attention from this major fuck up, which we kinda did on purpose to save on customer service costs when you idiots try to use your unactivated cards.
Not that they are perfect but I've been much happier with my credit union than any commercial bank I've used in the last 20 years...
I still cannot find the droids I am looking for...
'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'"
If you look at identity theft there are 3 "greatest" threats, stupidity on the part of the cardholder, stupidity on the part of the bank, or stupidity on the part of a third party. Even the best individual practices can't protect against stupidity from the bank or stupidity from a third party that has your card info for a legitimate reason.
For some reason banks seem to think that they aren't a threat to someone's security of their identity, they are a -huge- threat because they have all the information identity thieves need to make fraudulent purchases. Such things like this will undoubtedly have pressure put on the post office and mail handlers rather than the main culprit, the bank.
Taxation is legalized theft, no more, no less.
They aren't Chinese - they British. They were incorporated in London in 1990 and have been headquartered in London since 1993. Even the Wikipedia page will tell you that.
I insist my Bank either mails to the local branch for pick up (with ID) or in some cases sends by signed courier. Almost every service representitive, when questioned thinks this is a "good idea" because they admit they hear of an enormous ammount of fraud this way. Banks have no interest in doing this by default in my area.
I understand it's usual practice in MOST countries to mail pre-activated cards (maily credit, debit not so much) to residential addresses. Indeed credit cards go 'missing' in the mail often.
This is one of the most common methods of physically obtaining a credit card. Even if you have to go to the branch to get the card activated by a pin, which occurs with Debit cards (credit cards you just need to sign the back of them and their good to go) the fraudsters know branches are slack about correctly checking ID and obtaining a fake or doctored ID is trivial.
My advice, for you own good, insist you pick up your new card from your local branch, if you have the option of paying for a signed courier if the bank won't then do so.
After logging in slashdot still does not take you back to the page you were on. It's been that way for 20 years.
HSBC becomes the first bank to issue pre-signed checks to make check writing easier for it's customers. Simply fill in the amount and date and use the checks as easily as their pre-activated debit cards.
The problem is not with mailing, it's with pre-activation. The customer has to be made to activate manually to confirm that they did receive the card anyway. Activating manually generally requires user credentials. This can be done online, saving the hassle of having to go to a bank personally. (required: key from issued card + key from user account)
Also, if "the fraudsters know branches are slack about correctly checking ID and obtaining a fake or doctored ID is trivial", I have more issues with the bank than just the mailing of cards. Switch banks ASAP.
An elderly relative of mine is with HSBC. Being quite savvy she liked to browse the Internet for bargains, and inevitably her search took her to eBay. Long story short a scammer sent a faulty item, lifting about £65/$100 from her debit card as payed through Paypal. Obviously the cardinal rule of debit card use is to avoid using one online as much as possible...never use one on eBay.
With what is certainly an anomaly in Paypal's so expertly rendered services that we now expect of a caring quasi-bank, she found herself delayed from getting her money back. Meanwhile our scammer had apparently left or been banned from Fleabay. So she called HSBC, citing the 'debit protection' they'd included with her current account.
Explaining the incident to the first man somewhere on the subcontinent was a nightmare. To his credit he seemed very pleased to help, but his listening skills and speaking style were out of touch with a native British English speaker. Simply put my relative couldn't understand half of what he was saying...and the calls degenerated into his profuse apologizing and her asking him to speak slower, politely.
This went on for a few more calls, two more foreign customer service people abroad went on - until eventually the lodged claim had enough clarity that it warranted getting a person who spoke better. Eventually an employee with English much closer to that of a typical Briton got on the phone, and despite being strenuously nagged over this seventy quid refused to pay because it was against the bank's policy to refund debit transactions.
But it all ended well as my relation had a cash ISA with the bank - it took a politely worded threat of changing accounts and ISA to a competitor before firmly requesting a superior a few times before an apparant manager reneged on HSBC's refusal and refunded the account in full. A whole lot of headaching for all concerned bar our scammer who apparently did a bunk with a nice chunk of change.
Moral of the story is to casually check with older/quite naive people who have the Internet but are not as experienced with the world of online shopping. Use credit cards not debit cards; if they are suspicious of credit explain it to them. Else they might have to talk to 'John or 'Richard' or 'Hannah' over at the other end of the commonwealth for hours chasing up. My family member was lucky judging by all the horror stories of 'debit protection' floating around.
The lack of even the rudimentary security is precisely the reason I refuse to carry a debit card. Without your knowledge, your checking account is empty and your mortgage bouncing.
With a credit card, you get to argue with the bank about their money.
With a debit card, you get to argue with the bank about your money.
What happens when the bank denies your dispute? With credit cards, you get nastygrams. With debit cards, your mortgage starts bouncing. Again.
I'll take an ATM card any day of the week over a signature debit card.
SirWired
I would worry a lot about the statement 'Through our systems and analytics, we focus on the greatest and most active threats in an effort to avoid negatively impacting customer experience.'
That would seem to indicate they have much worse problems than the pre-authorized debit cards in the mail that must require a lot of resources and planning to take control of.
Definitely a bank to avoid as both a customer and investor.